The Maritime India Vision 2030 articulates a clear vision for the maritime sector. It lays emphasis on megaports and transshipment hubs, and focuses on the utilisation of inland waterways and the use of technology. Alongside this, there is a strong focus on going green.
About 95 per cent of India’s trade (imports and exports) by volume flows through ports – this is about 65 per cent of its trade by value. Less than 10 per cent of the sector’s energy needs are met by renewable power.
The Harit Sagar guidelines envision a transition towards green ports and green shipping. One target is to raise the share of renewable energy to 60 per cent of the total power consumed. The plans for this include 14 hydrogen/ammonia hubs, 100 per cent shore-to-ship power facilities and 14 carbon-neutral ports. Deendayal, Paradip and V.O. Chidambaranar have been identified as potential green hydrogen hubs and terminals.
The policy targets increasing port capacity to over 10,000 metric tonnes per annum (mtpa) by 2047, from the current capacity of over 2,600 mtpa. The role of private players is to be augmented. Public-private partnership (PPP) terminals now handle about 50 per cent of cargo at major ports, and this share is to be raised to 85 per cent.
New greenfield projects such as a mega transshipment port at Galathea Bay, Great Nicobar Island, and an international container port at Vadhavan may bridge a key gap. Better utilisation of inland waterways and doubling of cargo traffic share to 12 per cent by 2025 from the current 6 per cent are also on the cards. In terms of technology, schemes such as Port Community Systems and the National Logistics Portal (marine) can help improve logistics.
The sector is cyclical, and directly linked to global and domestic economic activity. Geopolitics has a big impact. The Gaza War has led to attacks on Red Sea traffic, and shippers are avoiding the Suez Canal. This has triggered higher freight rates, higher insurance premiums and longer lead times for cargo delivery. Fears of further escalation have also led to higher fuel costs.
Other policy measures include introduction of a tariff policy for major ports, tariff guidelines for BOT, guidelines for PPP concessionaires, SAROD-Ports (Society for Affordable Redressal of Disputes-Ports), the draft green port policy and the revised model concession agreement. These may smoothen operations, and reduce disputes and other frictions.
There have been many private sector financial deals. Adani Ports has acquired the Krishnapatnam, Karaikal and Gangavaram ports, the JM Baxi Group has acquired the project logistics business of All Cargo Logistics and Lift and Shift, and Hapag-Lloyd has acquired a 40 per cent stake in JM Baxi Port Private Limited. In addition, the Adani Group has acquired the ICD of Navkar Limited at Tumb, while Aurobindo Realty has taken over the GMR Group’s stake in Kakinada SEZ alongside a major stake in Kakinada Seaports Limited. Moreover, JSW Infra has acquired the Chettinad Group’s terminals at Kamarajar and New Mangalore, and, more recently, a majority stake in PNP Port from the Shapoorji
Pallonji Group. Most recently, financial closure was achieved for the mega container terminal
at Tuna Tekra in Kandla Port.
The sector faces challenges and issues in areas such as logistics, port processes, tariff-setting, and project execution. For instance, the turnaround time remains high, and the Maritime India Vision 2030 targets a reduction in this to less than 20 hours by fiscal year 2030. Other complex issues arise from the lack of coordination between the central and state governments, non-resolution of legacy tariff issues, cybersecurity risks, etc. Tackling all this will require a holistic approach and the ability to maintain policy focus through global turmoil. Vision documents such as Harit Sagar, Sagarmala and Maritime India
Vision 2030 indicate that policymakers are aware of the challenges, but effective implementation
will be required to turn the vision into reality.